By Gopal Sharma KATHMANDU, May 28 (Reuters) - Nepal will formally abolish its once-revered monarchy on Wednesday, creating a new republic in the Himalayas and meeting a key demand of rebels who fought a bitter insurgency seeking to rid the country of its royalty. A special assembly elected in April is set to hold its first meeting on Wednesday and will vote to abolish the monarchy. The motion is expected to be approved, although some royalists may oppose the move. Unpopular King Gyanendra is expected to vacate his palace in the capital Kathmandu soon after the vote, although he has made no comment on his plans. "This is an epoch-making event that has become possible after a long struggle of the Nepali people," Maoist chief Prachanda said, referring to a decade-long insurgency that began in 1996 in which more than 13,000 people died. "For the first time Nepal is being declared a republic. This is not an ordinary thing," he added. Abolishing the 239-year-old monarchy was a key part of the peace deal with Maoist former rebels, who emerged as the largest party in elections to the 601-member assembly in April. Security is tight in the capital, which is tense after a series of bomb blasts, some blamed on pro-royalist groups, in the city over the past few days. No one was killed in the explosions. The government has banned rallies near the assembly venue and other royal sites but thousands of anti-monarchists say they will take to the streets to celebrate anyway. The rapid demotion of Gyanendra from king to citizen is in stark contrast to his predecessors. Kings in majority-Hindu Nepal were traditionally revered as Lord Vishnu, the god of protection. But Nepalis say much of the mystique of the royal family was broken after the 2001 palace massacre in which popular King Birendra and eight other royals were killed by then Crown Prince Dipendra, who later turned the gun on himself. That image was further tarnished after Gyanendra fired the government and assumed absolute powers in 2005 only to be humbled by weeks of anti-king protests a year later. "THE KING MUST LEAVE" The government warned on Tuesday that it could use force to throw Gyanendra out of the palace if he refuses to leave. "The king must leave the palace immediately and move to the Nirmal Niwas," Peace and Reconstruction Minister Ram Chandra Poudel said, referring to Gyanendra's private home. "If he does not leave the palace then the government might have to use force to vacate the palace," he said. "This will not be good for him." All state allowances and benefits for the king will be stopped from Wednesday. There was no immediate comment from the palace. Officials said the government will table a motion to turn Nepal into a republic as soon as the assembly meets. Political parties and Maoists say a new president will step into the king's place as a head of state after the end of the monarchy. Ordinary Nepalis in the streets of Kathmandu were unperturbed by the drama. "I think it is good that the king is going," said taxi driver Niranjan Shrestha, 36. "He hasn't done anything for the people except amassing money for himself and his family." (Editing by Bappa Majumdar and David Fogarty)
REFILE - CORRECTING TYPO A policeman waits at the site where an unexploded bomb was discovered in Kathmandu May 27, 2008. A bomb exploded in Nepal's capital on Tuesday, injuring at ...
